As part of ongoing efforts to modernise the financial sector in the Maldives, the RuPay card service has officially been launched, marking an important step towards enhancing cross-border digital payment solutions. The launch took place during President Dr Mohamed Muizzu’s state visit to India and was attended by both President Muizzu and Indian Prime Minister Narendra Modi. This initiative is expected to enhance digital transaction capabilities, streamlining financial operations and fostering stronger economic ties between the two nations.
The introduction of the RuPay card service is seen as a major benefit to Indian tourists visiting the Maldives, a crucial segment of the Maldivian tourism market. Indian travellers will now be able to make seamless payments using their RuPay cards during their stay, making transactions more efficient and accessible. This development is also expected to benefit bilateral trade by simplifying financial transactions, particularly for small and medium enterprises (SMEs) that rely on smooth payment systems for business operations.
The RuPay service launch is a key component of President Muizzu’s broader financial integration strategy, aimed at introducing global payment solutions to the Maldives. This initiative also complements a recently signed Memorandum of Understanding (MoU) between the Maldives Government and the National Payments Corporation of India (NPCI), which focuses on upgrading payment systems in the Maldives to support modern financial services, including digital payment wallets.
What is RuPay?
RuPay is India’s domestic card payment network, developed by the National Payments Corporation of India (NPCI) to fulfil the Reserve Bank of India’s (RBI) vision of establishing a card payment system that is accessible, cost-effective, and inclusive. Launched in 2012, RuPay competes with global card networks such as Visa and Mastercard but focuses on serving the Indian market. The network supports various types of transactions, including ATMs, point-of-sale (POS) payments, and e-commerce transactions.
One of RuPay’s key advantages is its affordability, as it offers lower transaction processing fees compared to international card networks. This has made it especially popular among India’s smaller merchants and consumers. With the launch of RuPay in the Maldives, Indian travellers can now enjoy a seamless payment experience while abroad, without having to rely on foreign card networks, making their travel experience smoother.
Benefits for the Maldives
The introduction of RuPay in the Maldives is poised to bring multiple benefits to the economy. First, the move will likely boost tourism by improving the payment experience for Indian tourists, one of the largest groups of international visitors to the Maldives. As India is a major trading partner, the new service will also make bilateral trade more efficient, with simplified transactions contributing to smoother business operations.
Furthermore, SMEs in the Maldives stand to gain from this development, as the streamlined payment system will allow for easier cross-border trade, particularly in sectors reliant on Indian suppliers. By enabling Indian RuPay cardholders to make direct payments, the initiative enhances the business environment for smaller enterprises that might otherwise face challenges due to currency exchange and payment delays.
Additionally, the collaboration between the Maldives and NPCI is expected to bolster the country’s financial infrastructure, supporting the wider digitalisation of the economy. As more modern financial services are introduced, including digital wallets and contactless payments, businesses and consumers alike will benefit from greater convenience and security in their transactions.
Overall, the launch of the RuPay card service is a positive development for both the Maldivian and Indian economies, strengthening their financial ties and providing tangible benefits to businesses and tourists alike. This initiative is set to play a pivotal role in modernising the Maldives’ financial sector, while fostering deeper economic cooperation with India.
